VIB and the IFC established a business relationship in 2011 when participating in the IFC’s Global Trade Finance Program (GTFP) as an issuing bank. Through more than 10 years of cooperation with eight Vietnamese banks currently joining the GTFP, VIB is the one with the largest limit and is also one of the most active banks with six awards from the IFC.

In February 2022, VIB was awarded the Fastest Growing Bank Partner in East Asia and the Pacific award. Moreover, in May, the IFC also increased VIB's trade finance limit to $200 million, making it the GTFP's largest trade finance limit in Vietnam.

With the new 5-year unsecured loan, VIB's total credit limit with the IFC has reached $450 million, including two loans valued at $250 million and a $200 million trade line.

As per the agreement, VIB will increase its lending to retail customers who want to purchase or renovate their homes. Within the scope of the agreement, VIB commits to spending at least $30 million to support the mortgage business with loans valued below $55,600.

This shows VIB’s adherence to the government objectives to boost the real estate sector and promote the disbursement of support packages in accordance with Circular No.33/NQ-CP.

In October 2022, VIB also completed the withdrawal of a $150 million loan from the IFC with similar terms to support individuals with home loans.

Le Quang Trung, head of Treasury at VIB, and Allen Forlemu, the IFC's regional director for the Asia-Pacific Financial Institutions Group, at the loan agreement signing ceremony

“We believe our continued support will enable VIB to grow its affordable housing portfolio, sending a clear demonstration that affordable housing finance is viable in this market. This will help foster the offerings of housing financing solutions in Vietnam, helping more people own a home, and boosting the growth of the real estate and construction sectors to generate more jobs,” said Allen Forlemu, IFC regional director for Financial Institutions Group, Asia and Pacific at the loan signing event in Singapore earlier this week.

According to a representative of VIB, "As the capital market is heavily influenced by global economic and political fluctuations, VIB's agreements with the IFC reaffirms and strengthens our long-term and sustainable cooperation relationship."

"In addition, the successful capital mobilisation in the current economic context also helps VIB strengthen its financial resources for credit granting activities to help individual customers with home loans and home repairs, boosting the credit demand that has slowed down in the real estate market since the beginning of the year," the statement continued.

As one of the top retail banks in Vietnam in terms of quality and scale, VIB is the only bank with a retail lending proportion that amounts to 90 per cent total credit, twice the industry average. Of this, half of the retail loans are for residential and renovation purposes.

In addition to having the lowest credit risk concentration, VIB's retail loans are highly secure, with more than 90 per cent being secured loans and all the collateral being high-quality real estate with full legal documents and liquidity.

Besides this, with a lean operating model, digitalisation, and sustainable risk management, VIB has been one of the banks with the highest return on equity at 30 per cent for three years in a row (2020-2022).

As a pioneer in applying international standards, VIB was the first to complete the three pillars of Basel II at the end of 2019, and applied for and complied with Basel III in terms of liquidity risk management in 2021. VIB was also one of very few banks to issue audited financial reports in accordance with the International Financial Reporting Standards in 2020 and 2021. Its 2022 report will be made public in the time coming.

By complying with international governance standards, VIB not only maintains high profitability and sustainability but also improves its reputation, brand, and transparency when participating in the international financial market. The successful mobilisation of high-value syndicated loans in the international market with attractive interest rates and tenors is a testament to this.

With this capital, VIB will have more resources to continue expanding its credit to meet the needs of retail customers, while also optimising profit margins in a high-potential growth period and maintaining industry-leading profitability.